Access, distribution key to driving uptake of third-party motor insurance – IEI boss

The managing director of International Energy Insurance Plc (IEI), Olasupo Sogelola says for the insurance industry to maximise the benefit of the Motor Third Party enforcement announced by the Inspector General of Police, access and distribution of the product will be critical.

IGP Egbetokun, IGP of police had along with the National Insurance Commission (NAICOM) fixed February 1, 2025, to fully commence the enforcement of third party motor insurance policy in Nigeria.

Section 68 of the Insurance Act and Section 312 of the 1945 Motor Vehicle (Third Party Insurance) Act mandated all vehicle owners to possess third-party insurance before operating their vehicles on public roads.

Sogelola said insurance operators need to look into how they can continuously ensure that the third party motor policy is made available and the distribution model is properly followed through because they will not always have the police going after third party for them.

“We as operators need to find a way of attracting the people to the third party motor insurance. Beyond saying we will pay your claim, we must do things that will make people to naturally want to buy the policy”

Read also: Motor third party enforcement will drive robust safety for motorists, road users- NIA

“International Energy Insurance Plc (IEI), a Norrenberger company is calling on motorist to ensure they have a valid policy to avoid falling short of the law, the MD said.

He applauded the Police IGP, for his quest to ensure full-scale enforcement of the policy across the country from February 1, 2025, noting that the enforcement will generally improve insurance acceptability and deepen penetration in the industry.

“We need to start to look at up scaling and improving third party and looking at what more we can do. We need to make it available and ensure that they are variants. There are so many things that go with it like incentives and whatever to retain and maintain all the people that will be buying.

Sogelola said apart from police enforcing third party, operators must be prepared to give what is right and that is to make sure that claims are paid promptly.

“The police will do their beat, but after this first year, how do we ensure that we continuously get it right. This is the question we need to ask ourselves and find lasting solutions to. We cannot be running to police every year to come and help us to enforce third party. Beyond enforcement, we have to look at our distribution models”.

Advising motorist on claims, he said, “When people have third party claims, they should ensure they look on their policy or certificates to find a link on how to report claims or telephone numbers to make calls and report the claims.

“More importantly people should be honest about claims, and not just come with fictitious claims looking for somebody who’s going to spray their cars for them.”